Smith's dismissal was the start of a weird day for Australia as he, Marnus Labuschagne and Tim Paine were all caught down the leg side.
While Labuschagne and Travis Head resurrected the Aussie innings with an 86-run stand, Head's dismissal for started the rot for Australia as India got on top.
From 124-3, Australia lost Labuschagne for 48, Cameron Green for 12 and Paine for 13 to slump to 155-7.
A late cameo from Nathan Lyon pushed Australia up to 195 but it consigned the side to the first onsecutive first innings scores of under 200 since tests against the West Indies in Perth and Brisbane in 1984.
Jasprit Bumrah took 4-56 from his 16 overs, Ravi Ashwin nabbed 3-35 to become the first finger spinner to take three or more wickets on day one of an MCG Test was Ravi Shastri in 1985/86, and debutant Mohammed Siraj had a day to remember with 2/40 off his 15 overs.
- news.com.au
Here's how it unfolded on day one: